How Will Range International’s New Factory and Rental Model Transform Its Business?
Range International Limited has reported its strongest quarterly sales to date, driven by its Re>Pal Indonesia operations, while gearing up to double production capacity with a new factory and pivoting to a pallet rental model.
- Q3 2025 sales revenue reached a record US$671k, up 33% from Q2
- Delivered 760 tonnes of pallets, a 44% year-on-year increase
- New Indonesian factory set to double production capacity by December 2025
- Shift towards pallet rentals expected to create annuity-like revenue streams
- Expansion plans underway for Philippines joint venture and Australian market entry
Record Sales Momentum
Range International Limited (ASX – RAN), the manufacturer behind the Re>Pal™ zero-waste plastic pallets, has reported its best-ever quarterly sales performance for Q3 2025. The company posted revenue of US$671,000, surpassing its previous high in Q4 2024 and marking a 33% increase from the prior quarter. This growth reflects a robust demand for sustainable pallet solutions in Indonesia, where the company’s operations are based.
Deliveries of pallets reached 760 tonnes, equating to nearly 40,000 units, representing a 44% increase year-on-year. These figures underscore the success of Range’s efforts to enhance production efficiency and expand its customer base, including winning back former clients and attracting new ones.
Operational Advances and Factory Relocation
Range International is on track to relocate its Indonesian factory outside the export bonded zone by the end of 2025. This move is pivotal, enabling the company to introduce pallet rentals; a significant shift from outright sales. The new facility, equipped with recently installed extruder machines, will double current production capacity and is expected to commence operations in December.
The rental model promises to transform Range’s revenue profile by generating recurring, annuity-like income streams. Customers typically rent timber pallets, and Range’s durable plastic alternatives, with lifespans exceeding seven years, are well-suited for this market. While initial funding will be required to support this transition, the potential for higher asset yields and stronger customer retention is considerable.
Strategic Expansion and Corporate Developments
Beyond Indonesia, Range is actively pursuing growth in the Philippines through potential joint ventures, aiming to replicate its Indonesian production model. Export sales to the Philippines will commence from the Indonesian factory while the company seeks the right local partner. In Australia, Range plans to supply Australian-standard pallets from Indonesia initially, with longer-term ambitions to manufacture locally and address plastic waste challenges.
On the corporate front, Range completed the first tranche of a capital raising in September, securing A$280,000, with a second tranche pending shareholder approval. The company also welcomed Mark Skipper to its board, whose expertise in supply chain and logistics is expected to bolster strategic direction.
Outlook
Range International’s Q3 results and operational initiatives position it well for continued growth. The combination of record sales, enhanced production capacity, and a pivot to rental services could redefine its market footprint and financial stability. However, execution risks remain, particularly around the factory relocation and the rollout of the rental model.
Bottom Line?
Range International’s bold factory expansion and rental strategy could reshape its revenue trajectory, next quarter’s results will reveal if the momentum holds.
Questions in the middle?
- How quickly will pallet rentals contribute to recurring revenue and profitability?
- What progress will Range make in securing a joint venture partner in the Philippines?
- Can the company successfully navigate the operational challenges of the factory relocation?
